Want to Buy a Home? Watch Out for Mortgage and Loan Fraud in Miami

Written by:Julian Stroleny PortraitJulian Stroleny

When you go to purchase a home, it is likely that one of the last things from your mind is being the victim of a fraud crime. After all, if you go through the proper channels and deal with professionals, purchasing a home is supposed to be safe. Unfortunately, that is not always the case, especially in Miami.

The real estate business, including the mortgage industry, are highly regulated. And while sometimes there are legitimate mistakes, other times, errors or mistakes in real estate transactions are viewed as fraud or attempted fraud. While a prosecutor is required to prove the defendant intended to commit fraud in order to secure a conviction, the defendant will likely face irreparable damage to their reputation due to the allegation. For this reason, it is important to have a criminal lawyer Miami offers on your side if you are accused of fraud.

Mortgage Fraud Definition

A Miami criminal lawyer defines mortgage fraud as any type of intentional omission, misrepresentation, or misstatement that is related to the loan. In order to qualify as being fraud, the misstatement or omission has to be material. This means that it could influence the bank’s decision on an important issue such as whether or not to approve a loan or agree to amended payment terms or to accept a reduction in the payoff amount.

Types of Fraud

There are two basic types of mortgage fraud, fraud for housing and fraud for profit. Appraisers, mortgage brokers, and bank officers are most commonly accused of fraud for profit as this involves insider information in order to commit fraud. Fraud for profit is not aimed at getting housing, unlike fraud for housing, but rather is aimed at taking advantage of the lending process in order to steal cash or equity from a lender, homeowner, or buyer.

Borrowers tend to be charged with fraud for housing. This occurs when a borrower is looking to acquire or maintain a home. This may include misrepresenting information on the loan application or convincing an appraiser to misrepresent the value of a property.

A fraud for profit scheme is typically prioritized by a prosecutor. However, any accusation of fraud is not something that you should take lightly. Even something as small as claiming that you are going to use a home as a primary residence when you are not is something that may come with some serious penalties and big fines.

Contact a Criminal Attorney in Miami

There are many clerical errors and minor mistakes that can occur when attempting to obtain a loan for a home. If you have been accused of fraud of any type, contact legal representation right away. Many of these cases can be fixed quickly, as there were mistakes simply made in error. However, these cases can damage your reputation if they are not taken care of quickly. A criminal lawyer Miami offers can help you through the entire process.

Stroleny Law: Criminal Defense Attorney handles a variety of criminal law cases, so call now if you have any questions.

View more contact information here: Criminal Lawyer Miami.


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